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Advantages of itemized deductions Itemized deductions might add up to more than the standard deduction. The more you can deduct, the less you'll pay in taxes, which is why some people itemize ? the total of their itemized deductions is more than the standard deduction.

The standard deduction is the better deal for most taxpayers and will result in a lower tax bill. However, if you had a certain life event or unexpected expense occur in 2022, such as a large medical bill or purchasing a home, itemizing your deductions instead could save you more money.

Itemized deductions lower your taxable income, which usually means they allow you to pay less taxes. But that depends on your tax bracket.

If your expenses throughout the year were more than the value of the standard deduction, itemizing is a useful strategy to maximize your tax benefits. Keep in mind that not all expenses qualify when you itemize. Itemized deductions include products, services, or contributions that have been approved by the IRS.

It takes more paperwork and effort to itemize. Depending on how good your records are and the amount of your deductions, this time-consuming process might not reduce your taxable income enough to make it worth the effort.

Itemizing requirements Enter your expenses on the appropriate lines of Schedule A. Add them up. Copy the total amount to the second page of your Form 1040. This amount is then subtracted from your income to arrive at the final taxable income number.

Other common itemized deductions include state income taxes, local income taxes, personal property taxes, and disaster losses. Itemizing most often makes sense for higher-income earners who also have a number of large expenses to deduct.

Itemized deductions, subject to certain dollar limitations, include amounts you paid, during the taxable year, for state and local income or sales taxes, real property taxes, personal property taxes, mortgage interest, disaster losses, gifts to charities, and part of the amount you paid for medical and dental expenses.